Record interest for EKN’s guarantees covering Working Capital Credit Financing for large companies
On 20 March, EKN presented new and expanded guarantees to assist exporters in managing the effects of the Covid-19 pandemic. One of these guarantees is aimed directly at large companies.
“The interest has been enormous. As soon as the scheme was announced we received immediate interest, with applications to a value of SEK 135 billion already” says Anna-Karin Jatko, Director General of EKN.
A Working Capital Credit guarantee from EKN is a lifeline in a turbulent financial market. Companies are able obtain bank loans whereby EKN, representing the Swedish state, guarantees 75 per cent of the bank’s risk.
Previously, during the financial crisis of 2008, Working Capital Credit guarantees from EKN assisted many large companies to pull through the crisis. At that time, EKN issued guarantees to 26 companies, totalling SEK 96 billion. All of these loans were repaid.
Demand for EKN’s newly issued Working Capital Credit guarantees for large companies was initially expected to be SEK 100 billion.
“To date, we have received applications from 34 companies and have already issued guarantee offers for the first applications,” says Anna-Karin Jatko. “It is important that we act quickly given the current circumstances. Companies need to secure immediate financing for their working capital. As a result, EKN’s Board has appointed an extra committee to deal with inquiries directly as they come in.”